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With everything said and written on the subject of stops, it should be given that everyone is conditioned to keep them religiously even before they start trading. No matter what source a newer trader turns to, utter importance of stops will be underlined and emphasized up to the degree that keeping them is heralded as the ultimate key to success. We all heard adages like “Take care of your losses, profits will take care of themselves”.
Do all the stern warnings work? Not really.
Time and again traders blow their stops, widen them in a course of a trade, hold losing position in false hope it will make them whole. If this destructive behavior continues despite all the warnings, there must be deeply rooted reasons for this. As with most trading flaws, failure to keep stops roots in fundamental misconceptions about the very nature of the market and trading. Such misconceptions cause incorrect psychological makeup which, in turn, results in behavioral patterns harmful for a trader’s...

Member

Very Good, I wholly approve, and completely sympathise with the sentiment....However....Valid and well meaning as it is, and indeed well written, the message delivered therein is inevitably doomed to fall on deaf ears yet again.

Active member

Thank you Mr Graifer. Your points are well made and are broadly in agreement with my overarching trading philosophies. As a result, given that you make fairly good sense, I pleasurably gave your article a rating of 10/10.

I look forward to more such confirmatory articles from you, which are in broad agreement with my trading intuitions.